The Reserve Bank of India

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An Interactive presentation on the RBI and its functions [2014].

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Made by Reeshabh Kumar Ranjan:

Made by Reeshabh Kumar Ranjan Class X-B Roll Number 27 2014-15 Ahlcon Public School

Bibliography:

Bibliography http://www.hindustanbusinessline.com http://rbi.org.in http://cia.gov.in http://www.nrirealitynews.com http:// en.wikipedia.org/wiki/Reserve_Bank_of_India http:// www.rbi.org.in/scripts/briefhistory.aspx

The Reserve Bank of India:

The Reserve Bank of India And its control on Public and Private Banks

Introduction:

Raghuram Rajan Introduction It is the Central Bank of India Established in “ 1 st April 1935” under the “RESERVE BANK OF INDIA ACT”. Its head quarter is in Mumbai (Maharashtra). Its present governor is Mr . Raghuram Rajan. It has “22 Regional Offices”, most of them in State capitals.

Dynamic Information of the RBI:

Dynamic Information of the RBI The Reserve Bank of India is India's Central Banking Institution, which controls the Monetary Policy of the Indian Rupee . It has reserves of US $ 311.86 billion. The Bank Rate is 9%. Interest on its reserves is 4% [Market Determined].

Structure of the Management Authority:

Structure of the Management Authority Central Board of Directors : The Central Board of Directors is the main committee of the Central Bank. The Government of India appoints the directors for a 4-year term . The Governor : The Governor of RBI is Raghuram Rajan. There are 4 Deputy Governors too. Supportive bodies : The Reserve Bank of India has four regional representations: North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai . Offices and branches : The Reserve Bank of India has four zonal offices .  It has 19 regional offices at most state capitals and at a few major cities in India.

Functions of the RBI:

Functions of the RBI Issue of currency Development role Banker to government Banker to bank Role of RBI in inflation control Formulate monetary policy Manager of foreign reserve Clearing house functions Regulations of banking system

Repo Rate and Reverse Repo Rate:

Repo Rate and Reverse Repo Rate REPO RATE: Whenever the banks have any shortage of funds they can borrow it from the central bank. Repo rate is the rate at which our banks borrow currency from the central bank. REVERSE REPO RATE: It’s the rate at which the banks park surplus funds with reserve bank.

How does RBI Controls other Banks ?:

How does RBI Controls other Banks ? The RBI supervises the functioning of banks. They see to it that the banks maintain a cash balance. They see to it that the banks not only provides loans to the rich but also the poor. Banks submit a record to the RBI on how much they lend, to whom, and at what rate of interest.

Bankers to Banks:

Bankers to Banks Maintains banking accounts of all scheduled banks. RBI also regulates the opening /installation of  ATM Fresh currency notes for  ATMs are supplied by RBI. RBI regulates the opening of branches by banks. It ensures that all the N.B.F.S follow the Know Your Customer guidelines. It issues guidelines and directives for the commercial banks.

The Real Control:

The Real Control Direct Action: The central bank may take direct action against commercial banks that violate the rules, orders or advice of the central bank. Moral persuasion : By moral pressure it may prohibit or dissuade commercial banks to deal in speculative business. Legislation: The central bank may also adopt necessary legislation for expanding or contracting credit money in the market. Publicity: The central bank may resort to massive advertising campaign in the news papers, magazines and journals depicting the poor economic conditions of the country suggesting commercial banks and other financial institutions to control credit either by expansion or by contraction.

Regulation of Banking System:

Regulation of Banking System Licensing: Every bank has to obtain license from the Reserve Bank. Management: The Reserve Bank has the power to change manager or director of any bank if it considers it necessary or desirable. Branch Expansion: Every bank needs to take prior permission from Reserve Bank to open new places of business in India. Power of inspection of Bank: The Reserve Bank may inspect any bank and its books and accounts either at its own initiative or at the instance of the Central Government.

Thank You:

Thank You

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